3. A successful building contractor purchased a 150-acre farm to operate a part time basis and raise beef cattle. The purchase price of the farm was $150,000. The contractor paid 30% of the purchase price in cash and financed the remainder over 15 years at a 10% annual simple interest rate with a mortgage payable to a local bank. Soon after the purchase of the farm, the contractor purchased cattle for $25,000, paid $10,000 in cash, and gave a promissory note to the seller for the balance. The note carried an 8% annual simple interest rate and was to b paid off within 5 years. During the first full year of operations, the farm resulted in the following revenues and expenses: Calves sold (income) Timber sold (income) Labor expenses $12,000 5,000 1,500 2,750 350 1,800 1,625 275 950 Expenses for machinery hired Veterinarian fees Fertilizer Expenses Property Taxes Feed purchased Expenses for repairs Interest expenses Insurance expenses Legal fees Expenses for miscel 11,700 1,000 350 425 arming operation and determine the net pro Prepare an income state (loss) before income taxe